Comment on Calendar Spreads

Ravi commented on 05 Jan 2019, 11:32 AM

Hi Karthik,

I have a doubt on what would be the effect of the recent decision by SEBI to move towards physical settlement of stock derivatives on the pair trading and calendar spreads trading, could you please share your thoughts ?
1. For pair trading, would it be better off to take trade the near or far month futures considering the number of days the trade would be open is not know ?
2. Also, seems like for calendar spreads, trades which gives signal to buy the current month future on the expiry day will not be possible, is it ?

Thanks..
~Ravi

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